Impossibility (Contract Defense)
Impossibility is a contract defense that excuses performance when an unforeseen event makes performance objectively impossible, such as destruction of the subject matter, death of a necessary party, or supervening illegality.
Exam Tip
Impossibility must be OBJECTIVE (no one can perform). Taylor v. Caldwell = destruction. Financial inability is NEVER impossibility.
What is Impossibility?
Impossibility discharges obligations when performance becomes objectively impossible due to unforeseen circumstances.
Categories
| Category | Example |
|---|---|
| Destruction of Subject Matter | Building burns down |
| Death or Incapacity | Artist dies before work |
| Supervening Illegality | New law prohibits activity |
Requirements
| Requirement | Description |
|---|---|
| Objective Impossibility | No one could perform |
| Unforeseen | Not foreseeable at formation |
| Not Party's Fault | Didn't cause impossibility |
Objective vs. Subjective
| Type | Effect |
|---|---|
| Objective | Excuses performance |
| Subjective | Does NOT excuse |
Landmark Case: Taylor v. Caldwell (1863)
Music hall burned down. Both parties excused - destruction of subject matter discharges contract.
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Related Terms
Impracticability
Impracticability is a contract defense that excuses performance when an unforeseen event makes performance extremely and unreasonably difficult or expensive, though not strictly impossible.
Frustration of Purpose
Frustration of purpose is a contract defense that excuses performance when an unforeseen event substantially destroys the principal purpose of the contract, even though performance remains physically possible.